Here are some of the latest developments from the world of crypto
Bitcoin exchange LocalBitcoins announced its demise, saying it could no longer offer its Bitcoin trading service because of the prolonged crypto winter. LocalBitcoins, launched in June 2012, has since helped prove Bitcoin as a global P2P electronic cash system free from centralized control.
In countries with unstable political leadership, Bitcoin propelled into prominence. For example, during Bitcoin's peak, Venezuela adopted Bitcoin as its national currency alongside the fiat currency.
"The huge volume moved in the country made the world realize that Bitcoin was being used in Venezuela," Ernesto Contreras, head of business development of 'Dash' cryptocurrency, told Decrypt.
Despite concerns, the impact of LocalBitcoins' closure on the Venezuelan ecosystem is expected to be minimal.
Decrypt said that a "Bitcoin Only" approach proved to be a disadvantage for LocalBitcoins, especially when Binance entered the market with a wide range of tokens. As a result, even though LocalBitcoins marked an essential chapter in Venezuelan crypto history, it was already out of popularity.
Coinbase Insider Trading May Change Crypto Industry
Former Coinbase employee Ishan Wahi pleaded guilty to two counts of conspiracy to commit wire fraud Tuesday in connection to an insider-trading scheme at the exchange.
However, Wahi still faces charges brought against him by the Securities and Exchange Commission (SEC). Its potential consequences go far beyond him.
The case centers on Wahi sharing information about upcoming token listings to the San Fransisco-based exchange to generate about $1.5 million in ill-gotten profits. SEC also claims that some tokens involved in the insider-trading scheme on Coinbase are illegal securities.
A top official told Decrypt that the case could have "huge implications on the industry" if the court rules in the SEC's favor, as it would "inhibit creators and developers' [ability] from creating assets in the future."
Suppose a ruling holds the Wahi in violation of securities law. In that case, it could also affect other digital asset companies in the US, potentially requiring developers to register their tokens with the SEC or implicating Coinbase and other exchanges as venues for selling illegal securities.